© 2015 deloitte business solutions hadjipavlou sofianos & cambanis s.a.0 vassilis kafatos, 20...

© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 1

Vassilis Kafatos, 20 October 2015

14th Tourism & Development Conference

The competitiveness of the Greek Travel & Tourism sector – a point of view


Contents

Key questions

The WEF Travel & Tourism (T&T) Competitive Index

The competitive position of Greece in the T&T Sector

Strengths and weaknesses of the Greek T&T sector

Strategies for improving the competitive position of Greece in the T&T sector

Key trends shaping the global T&T sector


Key questionsEnhancing the competitiveness of the Greek Travel & Tourism sector is a multidimensional and complex task. Let’s start by asking the following questions…

1. What is the current

competitive position of

Greece in the T&T Sector?

2. Where do Greece’s

strengths and weaknesses lie

in the T&T sector?

3. What strategies can

Greece follow to improve its competitive

position in the T&T sector?


Framework for assessing Greece’s current positionThe Travel & Tourism Competitiveness Index (TTCI) of the World Economic Forum.

The TTCI is a comprehensive strategic tool for measuring “the set of factors and policies that enable the sustainable development of the Travel & Tourism sector, which in turn, contributes to the development and competitiveness of a country.” Deloitte is a partner of the WEF TTCI.

Travel & Tourism Competitiveness Index

Enabling Environment

T&T Policy and Enabling Conditions

InfrastructureNatural and

Cultural Resources

Business Environment

Safety and Security

Qualification of the Labour Force

Labour Market

ICT Readiness

Prioritization of Travel & Tourism

International Openness

Price Competitiveness

Environmental Sustainability

Air Transport Infrastructure

Ground and Port Infrastructure

Tourist Service Infrastructure

Natural Resources

Cultural Resources and Business Travel

Source: World Economic Forum

15

5

4

Health & Hygiene

6

5

8

43

6

3

4

10

23

6

7

4

17

5

5

10

93

1 Number of indices


2015 TTCI global rankingsSpain tops the 2015 edition of the TTCI global rankings for the first time. 6 out of top-10 countries are European, whereas Greece ranks 31st, moving up one place from 2013.


Spain01France02

Germany03USA04UK05

Switzerland06Australia07

Italy08Japan09

Canada10

Greece31


Selected historic rankingsGreece’s TCCI ranking exhibits a declining trend, whereas other Mediterranean destinations are strengthening their position.


Spain and Portugal are widening the gap with

Greece

Croatia and Turkey are closing the gap with

Greece

Greece and Cyprus are showing a declining trend

out of 124 countries out of 133 countries out of 139 countries out of 140 countries out of 141 countries


T&T competitiveness and performance

Global RankingsWEF T&T

Competitiveness Index - 2015

International Tourist

Arrivals - 2014

International Tourist

Receipts - 2014

Country Brand Index 2014-15

Spain 1 3 2 2

France 2 1 4 5

Germany 3 7 8 3

USA 4 2 1 1

UK 5 8 7 11

Switzerland 6 39 24 15

Australia 7 44 11 6

Italy 8 5 6 10

Japan 9 25 20 14

Canada 10 20 23 17

Greece 31 17 22 25

Turkey 44 6 12 16

There appears to be a strong correlation between competitiveness and performance in the T&T sector.

Source: World Economic Forum, World Tourism Organization, Bloom


Singapore

Finland

Austria

Japan

Switzerland

Finland

Malta

Iran

Switzerland

Canada

Hong Kong

Austria

Brazil

Spain

Venezuela

Nigeria

Mozambique

Chad

Mauritania

Chad

Burundi

Angola

Switzerland

Pakistan

Chad

Mauritania

Burundi

HaitiLesotho

Singapore

Competitive position per pillarAreas where large gaps with top performers exist, may provide the most opportunities for improvement.

1-7 scale


Ranking per pillarGreece exhibits its lowest rankings in the areas of “business environment”, “labour market” and “price competitiveness”. “Health and hygiene” and “tourist service infrastructure” are the areas where Greece holds top position.

Singap

ore

Finlan

d

Austri

a Japa

n

Switzer

land

Finlan

d Malt

a

Singap

ore

Iran

Switzer

land

Canad

a

Hong

Kong

Austri

a

Brazil

Spain

Strong position

Middle ground

Weak position

Ranking among 141 countries

Trend of Greece’s ranking


Key strong and weak pointsMost of Greece’s lower rankings (6 out of top-10) are related to “business environment” and secondarily “human resources & labour market”, whereas strong points are more diverse and mainly related to “health and hygiene”, and “tourist service infrastructure”.

1. Effect of taxation on incentives to invest (138)

2. Effect of taxation on incentives to work (135)

3. Business impact of rules on FDI (131)

4. Efficiency of legal framework in settling disputes (125)

5. Labour and contributions tax rate (124)

6. Pay and productivity (119)

7. Total tax rate (114)

8. Extent of staff training (111)

9. ICT use for business-to-business transactions (101)

10. Hiring and firing practices (91)

1. Number of regional trade agreements in force (1)

2. Hotel rooms per 100 pop (2)

3. Number of physician per 1,000 pop (3)

4. Primary and secondary education enrollment (9 & 13)

5. Number of World Heritage cultural sites (10)

6. Environmental treaty ratification (11)

7. Number of operating airlines (14)

8. Wastewater treatment (15)

9. T&T government expenditure (18)

10. Airport density (19)

Weak points (notable low rankings) Strong points (notable high rankings)


Key takingsEnhancing the competitiveness of the Greek Travel & Tourism sector can start by building on our strong points and overcoming our weaknesses.

1

2

3

Encourage and facilitate private investment and business activity in the T&T sector

• Strive for a more simple and efficient legal and regulatory framework

• Introduce a friendlier and more stable tax regime

• Promote penetration of ICT (incl. mobile) technologies in business transactions (B2B & B2C)

• Create a more open, efficient and flexible labour market

• Improve T&T staff training

Make travelling to Greece easier and more attractive

• Capitalize on Greece being a safe destination with top health and hygiene conditions

• Improve effectiveness of marketing activities and strengthen the country’s brand

• Pursue global repositioning based on diversified tourism product portfolio

• Increase value offered to travelers to enhance competitiveness

• Build on the high government and private sector prioritization of T&T industry

Further improve T&T infrastructure and assets

• Focus on quality rather than quantity of tourist service infrastructure

• Enforce regulation to improve environmental sustainability

• Focus on improving quality of air transport infrastructure, roads and ports

• Promote business travel and focus on attracting international conferences and events

• Actively protect and promote the country’s rich natural and cultural resources


T&T trendsUnderstanding the key trends shaping the global travel & tourism sector is paramount to developing a flexible strategy for enhancing competitiveness.

DemographicsLGBT

Millionaires

Elders

Millennials

Mid

dle

clas

ses

of

emer

ging

mar

kets

Global travel

BRICs

Pressure to

infrastructure

Continuous

growth

Adm

in b

arrie

rs

to tr

avel

Impact of shocks &

perception of instability

Consumer

prefe

rencesAuthentic

Experiences

Personalization

Conspicuous leisure

Multi-generation

travel Bleisure

Golf vs. Cycling(the rise of MAMILs)

Transparency& value for money

Technology

Analytics

Mobile

Social

Shared economy

Sustainability

Carbon

footprint

“Go-green”

campaigns &

initiativesT&T

sector

Multi-channel

distribution & new

payment m

ethods


What’s Next?Inspiring and engaging the empowered holiday maker …

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In Greece, “Deloitte Hadjipavlou Sofianos & Cambanis S.A.” provides audit services, “Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A.” financial advisory, tax and consulting services and “Deloitte Accounting Compliance & Reporting Services SA” accounting outsourcing services. With a staff of more than 580 and offices in Athens and Thessaloniki, Deloitte Greece focuses on all major industries including financial services; shipping; energy; consumer business; life sciences & health care and public sector services. Deloitte clients include most of the leading private and public, commercial, financial and industrial companies. For more information, please visit our website at www.deloitte.gr3a Fragoklissias & Granikou str., 151 25 Maroussi, Attika – Greece, Tel: +30 210 6781 100

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© 2015 deloitte business solutions hadjipavlou sofianos & cambanis s.a.0 vassilis kafatos, 20...

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